Foreign exchange company
A non-bank foreign exchange company also known as foreign exchange broker or simply forex broker is a company that offers currency exchange and international payments to private individuals and companies. The term is typically used for currency exchange companies that offer physical delivery rather than speculative trading. i.e., there is a physical delivery of currency to a bank account.
Foreign exchange companies are normally distinct from money transfer companies or remittance companies and bureaux de change as they typically perform high-value transfers unlike their money transfer counterparts that focus on high-volume low-value transfers generally by economic migrants back to their home country or to provide cash for travelers. Transactions can be either spot transactions or forward transactions.
Companies by country
Foreign exchange markets in India has shown a steady increase as a consequence of increase in the volume of foreign trade of the country, improvement in the communications systems and greater access to the international exchange markets. The volume of transactions in these markets amounting to about USD 2 billion  per day does not compete favorably with any well developed foreign exchange market of international repute but with the entry of online Foreign Exchange Companies like FXKart, BookMyForex, BuyForex and others, the market is steadily growing . Around 25% of currency transfers/payments in India are made via non-bank Foreign Exchange Companies. Most of these companies use the USP of better exchange rates than the banks. They are regulated by FEDAI and any transaction in foreign Exchange is governed by Foreign Exchange Management Act (FEMA)1999.
United Arab Emirates
It is estimated that in the UK, 14% of currency transfers/payments are made via non-bank Foreign Exchange Companies. These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. UK forex brokers are not covered under the Financial Services Compensation Scheme. The 10 largest companies in the UK by net profit as at August 2012.
|No.||Company||Accounting Date||Pre Tax Net Profit|
|1||Western Union Business Solutions (formerly Travelex)[nb 1]||31 December 2010||£11,048,000|
|2||Moneycorp[nb 2]||31 August 2011||£7,660,000|
|3||World First UK Ltd||31 January 2012||£4,494,000|
|4||HiFX||30 June 2011||£4,486,000|
|5||Currencies Direct Ltd||30 June 2011||£4,471,000|
|6||Schneider (renamed Monex Europe Limited)||31 March 2012||£3,500,278|
|7||OPT||09 Feb 2014||£3,387,157|
|8||Foreign Currency Direct||31 October 2011||£1,687,364|
|9||AFEX||31 December 2011||£1,583,459|
|10||Global Reach Partners/Corporate FX||31 December 2011||£1,289,000|
Other or multinational
|This section needs expansion. You can help by adding to it. (October 2016)|
- Alpari Group
- American Express
- Beta 2 Limited
- Capital Index
- Caxton FX
- CitiFX Pro
- CMC Markets
- Currencies Direct
- Currency Exchange International
- Custom House (global payments)
- CWM FX
- First Solution Money Transfer
- Forex Bank
- FXdirekt Bank
- FxStat Group
- GAIN Capital
- Global Reach Partners
- Hirose Financial
- Holding Monex
- ICE - International Currency Exchange
- IG Group
- Integral Forex
- Interactive Brokers
- Interactive Brokers Group
- Khanani and Kalia International (Private) Limited
- LMAX Exchange
- Matchbook FX
- MCX Stock Exchange
- Midpoint (company)
- Monex Europe
- OFX (company)
- Ria Money Transfer
- Ripple (payment protocol)
- Saxo Bank
- TFI Markets
- Tullett Prebon
- Western Union
- World First
- X-Trade Brokers
- Zaner Group
- It is difficult to tell the exact revenue generated by Travelex from their private and corporate foreign exchange due to the number of entities and enterprise areas they have. £10m is an estimate although the group parent entity Travelex Holdings Ltd posted a loss of £150m for the year to 31 December 2009.
- TTT Moneycorp Limited also has high-street and airport/station bureaux de change. This profit figures includes that profit.
- "Spot and Forward Transactions" (PDF). USBank. Retrieved 13 December 2013.
- Julian, Saidur. "Top Forex Brokers". Fx Daily Report. Retrieved 7 October 2016.
- The Sunday Times (UK), 16 July 2006
- Boyce, Lee. "Beat the foreign exchange trap: How to send money overseas cheaply and securely". MailOnline. Retrieved 13 December 2013.